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Commodity Futures Trading
Commodity futures trading reacts to a broad range of factors. For example, crude oil has just fallen to a three week low. Today commodities traders are concerned that other nations will follow Indiafs example and raise interest rates. Higher interest rates tend to slow economic growth and the use of oil. Commodity futures trading in oil has dropped just over fifty cents for April delivery of benchmark light sweet crude whereas February 2012 delivery has dropped a dollar. Oil futures trading as far out as June 2016 is unchanged as traders still view the commodity as an inflation hedge.
Unlike oil, orange juice futures have gone up because of the frost in the worldfs second largest producing area, Florida. Now there has been a slight downward correction as the Department of Agriculture reports that the frost was not as bad as previously believed. In the case of oil the commodity market sees less use and is dropping the commodity price now and in future months. In the case of orange juice commodity futures are up because of decreased supply. To fully understand how commodity futures trading is affected by many divergent factors sign up for Commodity and Futures Training. Training will help you use both fundamental analysis and technical analysis with tools such as Candlestick charting to understand and predict the market in commodity futures trading.
2. Commodity futures trading reacts to a
broad range of factors. For
example, crude oil has just fallen to a
three week low.
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3. Today commodities traders are
concerned that other nations will follow
India•fs example and raise interest rates.
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4. Higher interest rates tend to slow
economic growth and the use of oil.
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5. Commodity futures trading in oil has
dropped just over fifty cents for April
delivery of benchmark light sweet crude
whereas February 2012 delivery has
dropped a dollar.
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6. Oil futures trading as far out as June
2016 is unchanged as traders still view
the commodity as an inflation hedge.
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7. Unlike oil, orange juice futures have
gone up because of the frost in the
world•fs second largest producing
area, Florida.
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8. Now there has been a slight downward
correction as the Department of
Agriculture reports that the frost was
not as bad as previously believed.
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9. In the case of oil the commodity market
sees less use and is dropping the
commodity price now and in future
months.
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10. In the case of orange juice commodity
futures are up because of decreased
supply.
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11. To fully understand how commodity
futures trading is affected by many
divergent factors sign up for Commodity
and Futures Training.
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12. Training will help you use both
fundamental analysis and technical
analysis with tools such as Candlestick
charting to understand and predict the
market in commodity futures trading.
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13. Commodity futures trading in an
organized fashion dates back at least 300
years to trading Tulip bulbs in Holland
and rice trading in Japan.
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14. Candlestick basics, the basis of today•fs
Candlestick analysis, came into being in
early commodity trading as rice traders
recognized recurring trading patterns.
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15. Traders said that they learned to let the
market tell them what the market was
going to do.
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16. Today•fs technical analysis with
Candlesticks as well as other technical
analysis tools in use today evolved from
early, formal commodity futures trading.
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17. Today•fs ability of the commodity trader
to foresee commodity prices in oil
futures or orange juice dates back to the
actions of very thoughtful traders in the
distant past.
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18. Today analysts are saying that the
fundamentals of the oil market do not
justify prices above $80. The market
already knows that!
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19. Many smart traders buy when they
believe the price of a commodity future
is cheap and sell when they think it is
overpriced.
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20. The sum of these trades creates a
market consensus smarter than any one
individual•fs market analysis.
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21. The extent to which commodity trading
software is successful is the extent to
which it follows tools such as Candlestick
charting techniques which date back
hundreds of years.
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22. A computer may be able to do the
calculations faster but the computer did
not have the wisdom to develop a
system that can so accurately predict the
future in commodity futures trading.
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23. So, as you are drinking your watered
down orange juice (Tropicana is planning
on putting only 59 ounces of juice in its
64 ounce containers.)
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24. and practicing the use of Candlestick
chart analysis don•ft forget to thank
those early rice traders for envisioning a
system that so accurately predicts where
commodity investing is going next.
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